Evercore ISI analyst John Pancari maintained a Buy rating on Zions Bancorporation National Association yesterday and set a price target of $64.00.
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John Pancari has given his Buy rating due to a combination of factors that highlight Zions Bancorporation’s resilience and potential for growth. The management has addressed a recent $50 million charge-off as an isolated incident, emphasizing that it does not reflect broader systemic issues. They have also initiated a third-party review to strengthen their credit processes, which historically have resulted in below-average loss rates. Additionally, the bank expects credit costs to normalize and classified assets to decline, indicating a stable credit environment.
Furthermore, Zions Bancorporation’s management is confident in their limited exposure to non-depository financial institutions and anticipates moderate loan growth in the near term, with potential for mid-single-digit expansion as the macroeconomic picture clarifies. The bank’s net interest margin is expected to gradually increase, supported by stable loan growth and easing deposit costs. Despite challenges, fee income is projected to improve, driven by capital markets and treasury management activities, contributing to positive operating leverage. These factors collectively support the Buy rating, with a target price of $64.00.
Pancari covers the Financial sector, focusing on stocks such as First Horizon, KeyCorp, and PNC Financial. According to TipRanks, Pancari has an average return of -1.0% and a 46.29% success rate on recommended stocks.
In another report released on October 17, Robert W. Baird also upgraded the stock to a Buy with a $65.00 price target.